This invention relates generally to software for managing sales information and, more particularly, to a sales management system for managing, measuring and tracking the quantity and progress of sales activity throughout a sales cycle.
While standard business practices are in place for virtually all areas of a company, including accounting, production and customer service, the sales area has historically defied the application of such methodology. This is because customer buying processes are not standardized. Therefore, a salesperson selling a single product or service likely encounters a different buying process for every potential customer with which they work. This basic reality of sales makes it difficult to objectively ascertain progress, or lack thereof, in a specific sale. The lack of customer buying standardization means that salesperson analyses of specific sales situations, as well as the potential of their sales territory, are clouded with subjective opinions about each opportunity being worked.
This issue also undermines the management aspect of sales organizations. Sales management is generally based upon subjective information, passed from salesperson to manager, regarding salesperson progress on specific sales as well as overall sales territory penetration and potential. A sales manager generally relies upon the opinions and assumptions of the sales team to determine forecasts, priorities and decisions. These are major factors in the support, strategies, tactics and staffing decisions within a sales department.
Ultimately, most sales management decisions have been made solely upon end results, instead of on a salesperson's ability to achieve progress through various “steps” of a “sales cycle,” which can be defined here as a period of time from an initial substantive discussion between a salesperson and potential customer through a final decision to purchase. As a result of this focus on results, good economic times have, at times, masked the shortcomings of sales teams. An individual customer's willingness to buy may have had little to do with a salesperson undertaking the sales process with a high degree of professionalism.
Difficult economic times put a premium on sales ability and consistency of sales effort to secure new business. However, in both good and bad economic times a lack of standardized, effective sales management methodology is keeping many sales organizations from reaching their full potential. Accordingly, a need remains for an improved system and method for utilizing information related to sales activities, as opposed to just results, to assist sales managers in managing activities by their selling team related to new revenue production, generating forecasts, formulating strategic and tactical sales plans and making staffing decisions necessary for their businesses.